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DECREE

Detailing and guiding the imple-mentation of a number of articles of the Cinematography Law

THE GOVERNMENT

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the June 29, 2006 Cinematography Law;

At the proposal of the Minister of Culture and Information,

DECREES:

Article 1.- Scope and subjects of regulation

1. This Decree details and guides the implementation of Articles 5, 6, 11, 12, 14, 24, 31, 33, 34, 35, 38, 41 and 53 of the Cinematography Law.

2. This Decree applies to organizations and individuals engaged in cinematographic activities as well as organizations and individuals involved in cinematographic activities in Vietnam.

Article 2.- Cinema industry modernization policies (detailing and guiding the implementation of Clause 1, Article 5)

1. To invest in building modern studios for indoor and outdoor filming under the cinema industry planning approved by competent agencies.

2. To modernize technologies and invest in technical-effect equipment, and comprehensive specialized technical equipment, ensuring all conditions for film production with modern technology up to international audio-visual standards and promoting art creativity in order to raise the film production capacity and the quality of cinematographic products.

3. To invest in building and renovating cinemas and equipping them with modern equipment and surround-sound projectors under the cinema industry planning approved by competent agencies.

4. The Ministry of Culture and Information shall coordinate with relevant ministries and branches in elaborating a scheme to enforce Clauses 1, 2 and 3 of this Article; and devising a scheme to develop film production and dissemination so that Vietnamese films account for at least 30% of the total films screened in cinemas and at least 40% of the total films broadcast on television.

Article 3.- Incentive policies for organizations and individuals engaged in cinematographic activities (detailing and guiding the implementation of Clause 2, Article 5)

1. The State buys part or whole of the ownership rights to films of high ideological and artistic value produced by cinematographic establishments; the purchasing prices are determined on the basis of the film quality rated by the Central Film Appraisal Council; the purchasing prices shall be approved by the Valuation Council in accordance with current law.

2. Cinematographic establishments that produce films are entitled to preferences on value-added tax, enterprise income tax and export tax under tax law.

3. Enterprises and non-business units that build cinemas for commercial film dissemination or build other works for cinematographic activities are entitled to land assignment or lease by the State under the land law.

4. Cinematographic establishments are exempt from the registration fee when they register for land use rights and house ownership rights under the provisions of law.

5. Provincial/municipal People's Committees (below collectively referred to as provincial-level People's Committees) shall adjust their land use planning, prioritizing land allocation to cinematographic establishments; and adopt incentive policies and regimes to encourage organizations and individuals to engage in cinematographic activities in their localities.

6. The Ministry of Finance shall assume the prime responsibility for, and coordinate with the Ministry of Culture and Information and relevant ministries and branches in, guiding the implementation of Clause 2 of this Article.

Article 4.- Investment policies through a target program on cinematographic development (detailing and guiding the implementation of Clause 3, Article 5)

1. Investment in creating large-scale cinematographic works of high artistic value according to the following contents:

a/ To organize activities aiming to orient ideological themes associated with historical events and major development steps of the nation;

b/ To produce films.

2. Investment in scientific research into cinematographic activities according to the following contents:

a/ To conduct research aiming to improve the quality of creative works and bring into play social effects of cinematographic works;

b/ To apply modern science and technologies;

c/ To research into domestic and overseas cinematographic markets.

3. Human resource training and fostering:

a/ To improve the training quality of national cinematography schools, standardize curricula, invest in training and learning equipment in a comprehensive, specialized and professionalized manner in the sections of art, technique, finance, production management, and film distribution and dissemination;

b/ To send qualified persons and excellent students to cinematographically developed countries for training in art, technique, production management, and film distribution and dissemination;

c/ To attach importance to postgraduate training to supplement and develop the contingent of leading cinematography scientists.

4. The Ministry of Culture and Information shall coordinate with relevant ministries and branches in elaborating a target program on cinematographic development in accordance with Clause 3, Article 5 of the Cinematography Law and Clauses 1, 2 and 3 of this Article, and submit it to the Prime Minister for approval.

Article 5.- Policies on ordered film production (detailing and guiding the implementation of Clause 4, Article 5)

1. The State orders the production of feature films with themes on children, historical traditions and ethnic minority groups; documentaries, scientific films and cartoons.

2. The order and procedures for the production of State-ordered films comply with Article 12 of this Decree.

3. The Ministry of Culture and Information shall coordinate with the Ministry of Planning and Investment and the Ministry of Finance in elaborating plans on production of ordered films specified in Clause 1 of this Article.

Article 6.- Policies on film dissemination funding (detailing and guiding the implementation of Clause 5, Article 5)

1. The State ensures funds for film projection in service of political, social and foreign-relation tasks; children; and the armed forces in cinemas of mountainous, island, deep-lying, remote, ethnic minority and other rural areas.

2. The State ensures 100% of the funds for film projection and launch of film campaigns in service of political, social and foreign-relation tasks on public holidays and important national anniversaries.

3. The State ensures funds for the organization of, and participation in, national and international film festivals organized by the Ministry of Culture and Information according to Point a, Clause 1, Article 41 of the Cinematography Law.

Article 7.- Policies on land allocation to cinema construction in urban planning (detailing and guiding the implementation of Clause 6, Article 5)

1. Agencies competent to approve urban planning shall set aside land for construction of cinemas in central positions and the density of cinemas must be in line with the population size.

2. Cinematographic establishments that build cinemas are entitled to the preferences specified in Clause 4, Article 3 of this Decree.

Provincial-level People's Committees shall create conditions for cinematographic establishments to materialize the provisions of Clause 2 of this Article.

Article 8.- Establishment and operation of the Cinematographic Development Assistance Fund (detailing and guiding the implementation of Article 6)

The Cinematographic Development Assistance Fund is established by the Prime Minister to support the following activities:

a/ To reward films of high ideological and artistic values and social effects in accordance with the Fund's organization and operation charter;

b/ To support the production of experimental art films and first-hand films on the basis of the consultation of the Screenplay Appraisal Council under the Ministry of Culture and Information;

c/ To support the investment in creating screenplays, opening screenplay creation camps, organizing field trips for artists and scientific seminars, sending capable persons and excellent students abroad for cinematographic training, and popularizing Vietnamese films overseas to encourage and boost the development of the national cinematography.

2. The Cinematographic Development Assistance Fund prescribed in Clause 1 of this Article is formulated from the following sources:

a/ Initial state budget capital supports upon the Fund's establishment, which is taken from the budget for culture and information activities. Based on the Fund's operation efficiency, the State annually considers financial supports in accordance with the State Budget Law;

b/ Voluntary contributions and donations from domestic and foreign agencies, organizations and individuals and other lawful income sources;

c/ Proceeds from the sale of State-funded or -ordered films (if any).

3. The Minister of Culture and Information shall elaborate the organization and operation charter of the Cinematographic Development Assistance Fund and submit it to the Prime Minister for approval.

Article 9.- Prohibited acts in cinematographic activities (detailing and guiding the implementation of Clauses 1 and 2, Article 11)

1. Images, sounds, wording and letters that disparage or offend the national emblem, national flag, national anthem, value of the nation's and people's symbols, or show contempt for the nation and a religion.

2. Images, sounds, wording and letters that demonstrate savage beating, tortures, murders and incite crimes, except for the purpose of criticizing and condemning evils associated with film contents.

3. Images, sounds, wording and letters that are of obscene, depraved, incestuous nature and contrary to fine traditional customs and habits.

4. Images, sounds, wording and letters that show the condonation or sympathy with social evils or trigger panic and obscure feeling before supernatural and devil forces.

5. To name films offensively and vulgarly.

6. Images, sounds, wording and letters with contents contrary to law, which are not specified in Clauses 2, 3, 4 and 5 of this Article, except for the purpose of criticizing and condemning these acts.

Article 10.- Organization and operation of cinematographic non-business units (detailing and guiding the implementation of Clause 2, Article 12)

1. Cinematographic non-business units have the functions and tasks of serving the state management or providing public services in the cinematographic domain under the provisions of law.

2. The conditions, order, procedures and competence to set up or arrange, and the autonomy and self-responsibility in performing the tasks, and organizing the apparatus, payroll and finance of, cinematographic non-business units comply with current law.

3. Cinematographic non-business units defined in Clause 1 of this Article, depending on their functions and tasks, may carry out the following activities:

a/ Producing films at the request of non-business unit-managing agencies; producing ordered films, except when owners of ordered film production projects funded with the state budget select film production enterprises according to Clause 3, Article 24 of the Cinematography Law;

b/ Importing films for internal circulation in service of their work requirements;

c/ Screening and storing films in service of the state management or public service provision.

Article 11.- Conditions on legal capital for film production and trading (detailing and guiding the implementation of Point a, Clause 2, Article 14)

The legal capital is VND 1,000,000,000 (one billion Vietnam dong), which is certified in writing by competent agencies.

Article 12.- Order and procedures for selecting, and organizing the production of, state-ordered and -funded films (detailing and guiding the implementation of Clauses 3, 4 and 5, Article 24)

1. The selection and results of the selection of screenplays and enterprises producing state-ordered and -funded films shall be announced on the mass media, ensuring the principles of fairness and objectivity.

2. Order and procedures for screenplay selection:

a/ Investors of state-ordered and -funded film production projects shall announce on the mass media themes and requirements of film production projects to be implemented in the next fiscal year, as well as the conditions and procedures for organizations and individuals to send their screenplays for selection within 90 days from the date of announcement;

b/ Investors of state-ordered and -funded film production projects shall announce the screenplay selection results on the basis of the consultation of the Screenplay Appraisal Council established under Clause 3 of this Article;

c/ Organizations and individuals may send screenplays to investors of state-ordered and -funded film production projects and shall pay the screenplay appraisal fee in accordance with current law on fees and charges.

3. Screenplay Appraisal Councils for state-ordered and -funded films:

a/ Investors of state-ordered and -funded film production projects shall establish Screenplay Appraisal Councils;

b/ A Screenplay Appraisal Council must be composed of at least nine members, including representatives of competent cinematography state management agencies, film production project investors, screenwriters, directors and others.

4. The selection of enterprises producing state-ordered and -funded films must comply with the Bidding Law on the basis of the following criteria:

a/ The scenario and implementation scheme;

b/A list of the main film production participants;

c/ The film's total cost estimates;

d/ Technical equipment in service of the project;

e/ The financial capability;

f/ The production plan and schedule;

g/ Conditions for capital advance.

5. Contracts on state-ordered and -funded film production shall be made in writing between investors and film production enterprises, the main contents of a contract include:

a/ The names, addresses and bank accounts of the contracting parties;

b/ The name, material, main content, requirements on ideological and artistic achievements, of the film;

c/ The rights and responsibilities of the investor and the other contracting party, including the rights to, and responsibilities on the film copyright, and intellectual property rights of the investor and the film production enterprise;

d/ The venue and mode of contract performance;

e/ The contract value and payment mode;

f/ The contract performance progress;

g/ Liabilities for contractual breaches and dispute settlement;

h/ The time for film hand-over and submission for approval;

i/ Other agreements.

6. The Ministry of Culture and Information shall detail the order and procedures for selecting screenplays prescribed in Clause 2, and promulgate the regulation on organization and operation of the Screenplay Appraisal Council specified in Clause 3, of this Article.

Article 13.- Households dubbing, reproducing, selling and leasing films on a small scale and regularly employing less than ten laborers (detailing and guiding the implementation of Clause 2, Article 31)

1. Households dubbing, reproducing, selling and leasing films on a small scale and regularly employing less than ten laborers shall make their business registration at district-level business registries.

2. Conditions for dubbing, reproducing, selling and leasing films comprise:

a/ Having a lawful business site;

b/ Having equipment for examination of film contents and technical quality.

3. Households dubbing, reproducing, selling and leasing films on a small scale and regularly employing less than ten laborers shall comply with the provisions on dubbing, reproducing, selling and leasing films specified in Clause 2 of Article 28, and Clause 2 of Article 29 of the Cinematography Law.

Article 14.- Ratio of, and time for, screening Vietnamese films, time for screening films for under-16 children in cinemas (detailing and guiding the implementation of Clause 4, Article 33)

1. Cinemas shall screen Vietnamese films on film campaigns in celebration of national anniversaries and in service of political, social and foreign-relation tasks according to the Ministry of Culture and Information's regulations.

2. The ratio of Vietnamese feature film screenings must account for at least 20% of the total number of film screenings. Of this ratio, Vietnamese feature films shall be screened from 18 hours to 22 hours daily. In addition, they may be screened at other hours.

3. The time for screening films for under-16 children must finish before 22 hours.

Article 15.- Operation of mobile film projection units (detailing and guiding the implementation of Clauses 1 and 2, Article 34)

1. The State invests celluloid film projectors or other film-projecting means for mobile film projection teams in mountainous, island, deep-lying, remote and other rural areas.

2. The State provides special-use motor vehicles for provincial mobile film projection teams.

3. Funds for film shows in mountainous, island, deep-lying, remote, ethnic minority group and other rural areas comply with the Government's regulations on areas and regions.

4. The Ministry of Culture and Information shall assume the prime responsibility for, and coordinate with the Ministry of Finance in, formulating a scheme to enforce Clauses 1, 2 and 3 of this Article.

Article 16.- Ratio of, and time for, broadcasting Vietnamese films and films for under-16 children on television (detailing and guiding the implementation of Clause 2, Article 35)

1. Vietnamese film broadcast during film campaigns in celebration of national anniversaries and in service of political, social and foreign-relation tasks on the national television system complies with the Ministry of Culture and Information's regulations.

2. The ratio of time volume for broadcasting Vietnamese feature films by each television station must account for at least 30% of the total time volume of film broadcast. Of this ratio, Vietnamese feature films shall be broadcast from 20:00 hrs. to 22:00 hrs. In addition, they may be broadcast at other hours.

3. The time volume for broadcasting films for under-16 children must account for at least 5% of the total film broadcast time volume; the time of broadcasting films for under-16 children must finish before 22:00 hrs.

Article 17.- Competence to grant film dissemination permits (detailing and guiding the implementation of Points a and b, Clause 1, Article 38)

1. The Ministry of Culture and Information grants permits for dissemination of:

a/ Feature films produced or imported by cinematographic establishments nationwide, except for the case defined in Clause 3 of this Article;

b/ Documentaries, scientific films and cartoons produced or imported by central cinematographic establishments;

c/ Films produced with the cooperation of, production-service provision by or production joint ventures with, foreign organizations and individuals.

2. Provincial-level People's Committees grant permits for dissemination of documentaries, scientific films and cartoons produced or imported by local cinematographic establishments.

3. Provincial-level People's Committees may grant permits for dissemination of feature films when in the preceding year, local cinematographic establishments satisfy the following conditions:

a/ Having produced at least 10 celluloid feature films which are permitted for dissemination;

b/ Having imported at least 40 celluloid feature films which are permitted for dissemination;

When localities do not satisfy the two conditions specified in this Clause in the year, provincial-level People's Committees no longer have the competence to grant feature film dissemination permits in the next year.

4. From December 25 to 31 every year, based on the number of celluloid films produced and imported by local cinematographic establishments in that year, which are permitted for dissemination, the Ministry of Culture and Information shall notify provincial-level People's Committees whether or not they are eligible for granting feature film dissemination permits in the following year.

Article 18.- Order and procedures for organizing and participating in film festivals and for screening foreign films in Vietnam (detailing and guiding the implementation of Clause 1, Article 41)

1. Specialized film festivals and theme film festivals:

a/ When organizing specialized or theme film festivals, ministries, ministerial-level agencies, government-attached agencies, provincial-level People's Committees and the Cinematographic Association shall submit an application for organizing film festivals together with the film festival regulations to the Ministry of Culture and Information.

b/ Within 30 days after receiving complete and valid dossiers, the Ministry of Culture and Information shall issue written replies on its approval or disapproval. In case of disapproval, it shall clearly state the reason.

2. Conditions, order and procedures for introductory screenings of foreign films in Vietnam:

a/ Vietnamese and foreign organizations and individuals may organize introductory screenings of foreign films in Vietnam not for commercial purposes;

b/ Application dossiers for introductory screenings of foreign films in Vietnam comply with Clause 3, Article 41 of the Cinematography Law and also include the Vietnamese translation of film dialogues and a film copy; the application form shall be specified by the Ministry of Culture and Information;

c/ Organizations and individuals organizing the introductory screenings of foreign films in Vietnam shall pay the film appraisal charges in accordance with law on fees and charges;

d/ Within 15 working days after receiving the complete and valid dossiers prescribed at Point b, Clause 2 of this Article, the Ministry of Culture and Information shall issue written replies on its approval or disapproval. In case of disapproval, it shall clearly state the reason.

Article 19.- Granting certificates of full satisfaction of business conditions to film production enterprises (detailing and guiding the implementation of Clause 2, Article 14)

1. The grant of certificates of full satisfaction of business conditions to film production enterprises complies with Article 14 of the Cinematography Law.

2. Film production enterprises established and operating prior to January 1, 2007, shall apply for certificates of full satisfaction of business conditions within a year as from the date this Decree takes effect.

Article 20.- Handling of violations of law on cinematography (detailing and guiding the implementation of Article 53)

1. Individuals who commit acts of violating legal provisions in their cinematographic activities shall, depending on the nature and severity of their violation, be disciplined, administratively sanctioned or examined for penal liability; if causing damage, they shall pay compensations according to law.

2. Organizations that commit acts of violating legal provisions in their cinematographic activities shall, depending on the nature and severity of their violation, be administratively sanctioned; if causing damage, they shall pay compensations in accordance with law.

2. The sanctioning of administrative violations in cinematographic activities complies with regulations on sanctioning of administrative violations in culture and information activities.

Article 21.- Implementation effect

1. This Decree takes effect 15 days after its publication in "CONG BAO."

2. This Decree replaces the Government's Decree No. 48/CP of July 17, 1995, on cinematographic organization and activities, and Decree No. 26/2000/ND-CP of August 3, 2000, amending and supplementing a number of articles of Decree No. 48/CP of July 17, 1995, on cinematographic organization and activities, and annuls Articles 5, 6, 7, 8 and 9, Chapter II - Circulation of, and trading in, celluloid films, and film tapes and discs, of the Regulation on cultural activities and dealing in public cultural services, promulgated together with the Government's Decree No. 11 /2006/ND-CP of January 18, 2006.

Article 22.- Responsibilities for guidance and implementation of the Decree

1. The Minister of Culture and Information shall guide and organize the implementation of this Decree.

2. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, presidents of provincial/municipal People's Committees, organizations and individuals engaged in cinematographic activities, and organizations and individuals involved in cinematographic activities in Vietnam shall implement this Decree.